According to the law firm press release, the Complaint alleges that throughout the Class Period, defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, defendants made false and/or misleading statements and/or failed to disclose: (1) the full impact of certain manufacturing flaws on the Company’s earnings; (2) the Company was improperly recognizing revenue concerning certain products in its systems business; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company’s statements were materially false and misleading at all relevant times.
On February 29, 2012, the Company announced its financial results for the fourth quarter and year ended December 31, 2011. Specifically, First Solar reported a decrease of $345 million in net sales for the fourth quarter, as compared to the previous quarter, “primarily due to the timing of revenue recognition in our systems business and lower for module-only sales.” In addition, the Company disclosed various charges to earnings, including a charge of $164 million for warranty payments to replace equipment that caused premature power loss in certain panels. The Company spent $125.8 million in the fourth quarter on warranty claims and has put aside $37.5 million to cover future claims.
On these revelations, First Solar shares declined $4.10 per share or 11%, to close at $32.30 per share, on February 29, 2012.
On July 23, 2012, the Court issued an Order appointing lead plaintiff and approving the selection of lead counsel. On August 17, plaintiff filed their amended complaint.
On October 8, 2013, the Court issued an Order granting Plaintiffs' motion for class certification.
On March 27, 2015, Defendants and Plaintiffs filed a Motion for Summary Judgment. On August 11, the Court issued an Order granting in part and denying in part Defendants' Motion for Summary Judgment, and denying Plaintiffs' Motion for Summary Judgment.
On September 30, 2016, the Court issued an Order denying Derivative Plaintiffs' Motion to (1) Lift the Stay for a Limited Purpose; (2) Intervene for a Limited Purpose; and (3) Unseal Court Records. On October 17, Plaintiffs filed a Notice of Appeal of the Order of September 30, 2016.
On February 14, 2018, the Court of Appeals issued an Order denying Plaintiffs' appeal.